USD/JPY posted little gains today and tries to recover after the yesterday’s drop. Will climb much higher if the USDX and the JP225 indexes will resume the rebound. Price continues to move in range on the daily chart, we’ll have a clear direction only after a valid breakout from this range. Technically is still under selling pressure because is trapped under some important resistance levels.

Has registered a minor stroke today, but don’t worry because the United States data will bring life on this pair. We may have a high volatility in the afternoon, so you should be careful not to suffer a heavy loss. Today could be crucial for the USD, another disappointment will force the Federal Reserve to leave the interest rate steady till next year.

The Yen dropped on the mixed Japanese data, the Vehicle Sales have surged by 4.7% versus a 1.1% drop in the previous reporting period, while the Consumer Confidence fell to 43.3 from 43.8 points. Moreover, the Nikkei Manufacturing PMI has disappointed as well, was reported at 52.2 points, much below the 52.8 estimate.

We’ll see what the US data will bring in the afternoon, the NFP is expected to be reported at 180K, much below the 209K in the former reporting period, while the Unemployment Rate is expected to stay steady at 4.3% for the second month in August.

Moreover, the Average Hourly earnings could increase by 0.2%, while the ISM Manufacturing PMI could increase from 56.3 to 56.5 points.

Price has come back to retest the warning line (wl1) of the ascending pitchfork, but failed to close above it. A false breakout will signal another drop in the upcoming period, but we still need a confirmation that will drop further. Only a valid breakdown below the 50% retracement level could bring as a good selling opportunity. The fundamental factors will take the lead in the upcoming hours, you should be careful not to suffer a heavy loss. A larger increase will be confirmed only after a valid breakout above the warning line (WL3).